For the Quarter Ending September 2022
North America
Fluoroelastomer prices have fluctuated in the US market throughout the 3rd quarter due to high volatility in supply-demand dynamics. Fluoroelastomer prices declined sharply in the first two months of the quarter as the demand from downstream automotive and allied industries remained weak, culminating in sluggish offtakes. Meanwhile, production rates from 3M and other producers have been termed as firm resulting in stable supply dynamics. Market dynamics shifted the balance towards the end of the quarter as Fluoroelastomer prices rebounded in September 2022. In late Q3, demand from the downstream automotive industry increased, resulting in improved prices in the US market. There were speculations around rail strikes in several parts of the US. However, none came to fruition resulting in stable supply chains. Hence, as of September 2022, Fluoroelastomer prices were assessed at USD 32340 per MT on a FOB basis for grades with MV 25-61.
Asia
In Japan, Fluoroelastomer prices declined consistently in the first two months owing to weak demand sentiment and ample material availability. The first half of the third quarter also witnessed weak international demand for Japanese Fluoroelastomer. Market sentiment remained under pressure as the automotive output on the global level remained underwhelming. However, pricing sentiment changed in the later stages of the quarter on the back of stable demand in the domestic and international markets and constrained supply dynamics. Northeast Asia faced the wrath of several typhoons during September 2022, which majorly curtailed the supply chains of Japan, resulting in limited material availability in the market. Thus, as of September 2022, Fluoroelastomer prices were assessed at USD 45740 per MT on a FOB basis for grades with MV 25-40. In China, sluggish automotive output culminated in weak demand for Fluoroelastomers; thus, prices remained under pressure.
Europe
In Northwestern Europe, Fluoroelastomer prices seesawed during the third quarter of 2022. Prices declined sharply in the first two months owing to sluggish output rates from the automotive industry. The European region remained in the tight grip of inflation during the third quarter, following the previous quarter's trend. High energy prices, declining consumption rates, and a soft demand outlook culminated in growing speculations around a European recession. However, an increase in automotive sales in the second half of Q3 prompted demand for Fluoroelastomers in the automotive industry. An increase in demand from the downstream automotive caused spike in the prices. Thus, as of September 2022, Fluoroelastomer prices were assessed at USD 34920 per MT on FD basis for grades with MV 25-61.
